Following an initial announcement by In-Touch in a press release dated June 2, 2014, In-Touch Survey Systems Ltd. ("In-Touch") (TSXV: INX) today announced it has finalized the agreement to sell certain intellectual property assets related to 'Privacy Marketing' solution to a new company ("Newco") to develop a product currently named Project September ("PS"), and has received final approval from the TSX Venture Exchange. Former In-Touch CEO and current executive chair and director of In-Touch, Michael Gaffney, will lead the new company.
In-Touch, for its assets and upon completion of its investment, will retain approximately 41% ownership in Newco. The remaining shareholders, including Michael Gaffney, will hold an ownership interest of approximately 59%. Mr. Gaffney will hold approximately 38% ownership in Newco.
"The creation of Newco and the sale of certain intellectual property assets from In-Touch for the development of PS is consistent with the previously announced strategy of seeking opportunities to commercialize assets on a stand-alone basis. Moreover, PS is a Business-to-Consumer technology that best fits in a new company given that In-Touch is a Business-to-Business technology company," said Cameron Watt, president & CEO of In-Touch.
Project September is expected to launch in limited trial later in Q3 2014 and fully launch early in Q4 2014. In Newco, there are 10 team members working on the design and development of the core web and app technology for Project September – four in Nova Scotia and six in Ontario.
Certain statements included in this news release contain forward looking statements particularly in respect of the completion of the sale of assets to Newco and the future development of Newco and the Company's ownership in Newco, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company's current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties.
The TSX Venture Exchange has not reviewed the foregoing and has neither approved or disapproved the contents of this press release.
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